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Lancashire Holdings
(LSE:LRE)
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Rating:75Outperform
Price Target:
678.00 p
▲(11.06% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid financial performance (strong recent profitability and consistently positive cash generation) and favorable valuation metrics (low P/E and very high dividend yield). This is tempered by weaker near-term technical trend (trading below key shorter moving averages) and earnings-call risks tied to market pricing softening and less favorable reserve release dynamics despite reiterated high-teens ROE guidance.
Positive Factors
Disciplined underwriting and strong profitability
The combination of a 91% combined ratio and high-teens ROE indicates effective risk selection and pricing discipline. Sustained underwriting profitability can support earnings resilience even when catastrophe losses or market conditions fluctuate.
Negative Factors
Softening insurance pricing
A softer pricing environment can reduce future underwriting margins as renewal rates weaken, particularly in property. This may limit premium growth and make it harder to preserve the strong combined ratio achieved in the current period.
Read all positive and negative factors
Positive Factors
Negative Factors
Disciplined underwriting and strong profitability
The combination of a 91% combined ratio and high-teens ROE indicates effective risk selection and pricing discipline. Sustained underwriting profitability can support earnings resilience even when catastrophe losses or market conditions fluctuate.
Read all positive factors
Lancashire Holdings (LRE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.54B
Dividend Yield17.47%
Average Volume (3M)525.36K
Price to Earnings (P/E)6.7
Beta (1Y)1.02
Revenue Growth-1.60%
EPS Growth36.00%
CountryUK
Employees447
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)N/A
Shares Outstanding244,010,010
10 Day Avg. Volume573,691
30 Day Avg. Volume525,358
Financial Highlights & Ratios
PEG Ratio-1.51
Price to Book (P/B)1.39
Price to Sales (P/S)1.11
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£621.71Price Target Upside1.84% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Lancashire Holdings Business Overview & Revenue Model
Company Description
Lancashire Holdings Ltd. engages in the provision of insurance and reinsurance products. It operates through the following segments: Property, Energy, Marine, Aviation and Lancashire Syndicate. The company was founded on October 12, 2005 and is he...
How the Company Makes Money
Lancashire primarily makes money through (1) underwriting income and (2) investment income on its insurance float. Underwriting income is generated when the premiums the group collects for insurance and reinsurance policies exceed the sum of claim...
Lancashire Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.88B | 1.70B | 1.40B | 783.90M | 747.70M |
| Gross Profit | 1.52B | 1.37B | 1.22B | 1.01B | 522.70M | 590.70M |
| EBITDA | 0.00 | 356.32M | 371.30M | 364.50M | 12.40M | -26.60M |
| Net Income | 325.90M | 299.56M | 321.30M | 321.50M | -15.50M | -62.20M |
Balance Sheet | ||||||
| Total Assets | 4.71B | 4.81B | 4.38B | 3.90B | 4.75B | 4.07B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 561.60M | 3.13B | 2.88B | 2.38B | 517.70M |
| Total Debt | 447.70M | 477.37M | 469.30M | 471.30M | 469.40M | 463.60M |
| Total Liabilities | 3.22B | 3.30B | 2.89B | 2.39B | 3.48B | 2.66B |
| Stockholders Equity | 1.49B | 1.51B | 1.49B | 1.51B | 1.33B | 1.41B |
Cash Flow | ||||||
| Free Cash Flow | 342.80M | 465.16M | 566.40M | 425.30M | 312.80M | 239.90M |
| Operating Cash Flow | 346.50M | 467.51M | 573.80M | 441.90M | 323.80M | 243.80M |
| Investing Cash Flow | 19.30M | -301.19M | -251.90M | -54.30M | -194.90M | -186.80M |
| Financing Cash Flow | -406.90M | -314.05M | -386.10M | -185.40M | -90.80M | 32.80M |
Lancashire Holdings Technical Analysis
Positive
610.50
Price Trends
619.14
Positive
613.46
Positive
591.06
Positive
Market Momentum
4.90
Negative
63.44
Neutral
71.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LRE, the sentiment is Positive. The current price of 610.5 is below the 20-day moving average (MA) of 617.22, below the 50-day MA of 619.14, and above the 200-day MA of 591.06, indicating a bullish trend. The MACD of 4.90 indicates Negative momentum. The RSI at 63.44 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LRE.
Lancashire Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £417.69M | 11.42 | 14.67% | 8.21% | -10.22% | -5.62% | |
75 Outperform | £1.54B | 6.67 | 21.73% | 17.47% | -1.60% | 36.00% | |
70 Outperform | £159.54M | 8.02 | 11.72% | 3.00% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | £846.22M | 56.84 | -15.72% | 5.24% | 12.19% | ― |
* Financial Sector Average
GB:LRE
Lancashire Holdings
638.00
109.89
20.81%
GB:HUW
Helios Underwriting
236.50
39.76
20.21%
GB:SAGA
Saga plc
600.00
384.00
177.78%
GB:SBRE
Sabre Insurance Group plc
174.40
47.78
37.73%
Lancashire Holdings Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Lancashire Sets Date for 2026 Half-Year Results and Investor Call
Neutral
Jun 19, 2026
Lancashire Holdings will publish its 2026 half-year results at 7:00 a.m. UK time on 29 July 2026, followed by an analyst and investor conference call at 1:00 p.m. UK time. The company has set up mandatory advance registration for both the audio ca...
Regulatory Filings and Compliance
Lancashire Corrects Figure in CEO Share Transaction Disclosure
Neutral
May 20, 2026
Lancashire Holdings has corrected a previously announced figure relating to a share transaction by its group chief executive officer, Alex Maloney. The company clarified that the total proceeds from the sale of shares to cover tax liabilities and ...
Regulatory Filings and Compliance
Lancashire CEO increases stake after exercising restricted share awards
Neutral
May 20, 2026
Lancashire Holdings has disclosed a management share transaction involving its Group Chief Executive Officer, Alex Maloney, who exercised 465,675 restricted share awards granted as nil-cost options under the company’s performance and bonus d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.